The Retail Automotive Alliance (RAA) is a completely new structure for the UK Automotive Industry. It is a separate legal entity (a limited company) dedicated to negotiating and purchasing goods and services on behalf of its shareholder members at advantageous rates and service levels. It was launched in January 2005 and is equally owned today by 22 independent Motor Dealer Groups geographically spread across the United Kingdom.

Formed in 2003, the initial concept was developed by 9 independent dealers, who researched the idea very thoroughly before launch. They had the idea validated, shaped and moulded by consultants led by Professor Garyl Rees from the Cardiff Business School and the ICDP (International Car Distribution Programme) who also gave recommendations on how to set up the group and how to relate to vehicle manufacturers and suppliers. The consultants also looked at other buying groups outside the motor dealer environment and identified areas, which had led to success and pitfalls to be avoided.

Although of course each RAA member is independent, collectively they are now a very big player in the industry as the RAA. They have a combined turnover of £2.5 billion. This puts the group second only to Pendragon in the UK retail motor industry turnover league tables and gives an indication of the group’s enormous buying power.

Successful tenders have been completed and implemented on tyres, paint, showroom furniture, oil lubricants, health insurance, computer hardware, credit card processing, number plates, used car warranty, bottled water, wheel weights, body protection, fuel cards, vehicle data checking, company insurance and used car auctions with a total trade value of around £50 million turnover.

The group has so far saved its members about £6 million annually through agreements with major companies including:

•  Akzo Noble
•  Autotrader
•  Barclaycard
•  Blackhorse
•  Bupa
•  Capital Bank
•  Continental
•  Dell
•  Dupont
•  Experian
•  Ford Credit Europe
•  Goodyear/Dunlop
•  Groupama
•  Manheim Auctions
•  Michelin
•  NIG
•  PPG Nexa
•  Shell
•  Texaco
•  Willis